The one-two punch of strong US and weak Canada data has sent CAD reeling. Indeed, the pair is close to finishing around 1.32, which is a level it only closed above once in the past three months. Over the past month, CAD also declined against all the major currencies with notable declines against AUD and some European currencies.
We flagged CAD downside risks in the dollar bloc in mid-July and still favour holding short CAD exposure against most of the majors—bar some European currencies.
For USDCAD, we still prefer to follow rather than fade the rallies with sights on 1.35.
Copyright © 2016 TD Securities, eFXnews™Original Article
